Kimberly-Clark Corp. reported its second straight quarterly sales decline as well-stocked Americans bought less toilet paper and paper towels in a largely reopened economy.
Results fell short of Wall Street’s already-low expectations as the company’s professional business saw only a moderate bump in sales at U.S. hotels, restaurants and offices, and demand continued to drop for staples such as toilet paper and paper towels.
The Texas-based maker of Huggies diapers, Cottonelle toilet paper and Scott paper towels reported a 3% decline in organic sales, a measure that strips out deals and currency changes, for the quarter ended June 30.
Individuals and retailers stocked up on toilet paper and paper towels last year as bare shelves at the height of the coronavirus pandemic scared many people into stockpiling. Now, people are using less toilet paper and paper towels at home while also working through supply in homes. Retailers are working through inventory stored in warehouses.
The company’s home-care unit saw organic sales fall 17%, compared with a year ago when Americans were scrambling to get enough paper towels and toilet paper. Sales rose 6% for Kimberly-Clark’s personal-care unit and 2% in its commercial business.
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